E.ON has agreed to buy Energi E2 Renewables Ibericas, Dong Energy‘s wind farm business in Spain and Portugal, for €722 million. Currently, E2-I generates 260MW of electricity in Spain and Portugal from renewable sources. This acquisition, along with a several others across Europe, should guard E.ON against the risk associated with developing renewables projects.

Content German utility E.ON is set to become the fourth largest player in the Spanish power market as a result of the approved purchase of Spanish power utility Viesgo from Enel, and the acquisition of additional generation capacity from Endesa. Although E.ON lost out to Enel in the battle to acquire Endesa, in the subsequent forced divestiture of assets the firm has put together a very balanced portfolio of assets.

Indeed, as a result of the forced sales, E.ON will now be able to draw upon 450MW of nuclear-generated electricity under a 10-year supply agreement, three power plants that can generate 1,475MW and a combined cycle gas turbine plant under development that will add another 800MW. When these are supplemented with the newly acquired Iberian wind assets, this portfolio appears to provide E.ON with a very adaptable and profitable-looking mix of assets, as power demand continues to increase in Spain.

E.ON is also investing in renewable projects in the UK and is a member of the consortium developing the London Array project. The £1.5 billion wind power scheme will have 341 offshore turbines about 12 miles off the Kent and Essex coasts. The consortium behind it is made up of Shell WindEnergy, Core and E.ON UK Renewables. (Read more )